AMN - SIERRA LEONE: Sanama Hill continuity confirmed

Drilling has confirmed the continuity of gold mineralisation along strike and down dip at the Sanama Hill target of Sula Iron & Gold’s Ferensola project in Sierra Leone. Results have been reported for three holes of the 5185-metre Phase 3 program with another 11 holes to report.

The initial results comprise 336 drill core samples from the three holes which were all drilled on Sanama Hill.

The holes were designed to test the potential for down dip and southern extensions to the high-grade gold mineralisation encountered during the Phase 2 drilling campaign completed earlier in the year.

Best results were: 6.9 g/t gold over 1.6 metres from 257.4 metres, including 10.2 g/t over 1 metre; 2.5 g/t in oxide mineralisation over 1.2 metres from 0 metres; 2.8 g/t over 3 metres from 294 metres, including 5.7 g/t over 1.1 metres.

The drilling has confirmed vertical mineralisation continuity up to 300 metres from surface and remains open ended to depth.

Samples from the remaining 11 holes were due to leave Freetown in early August bound for the ALS assay testing laboratory in Ireland.

In addition, Sula has completed a soil sampling program across eight new targets identified during the Tect Geological Consulting structural study with 117 samples being collected for analysis.

Sula’s CEO Roger Murphy said, “These are very pleasing results in their own right, but more importantly, with every hole we drill our understanding of Sanama Hill's gold endowment improves significantly.

“These three holes have extended the continuity of gold mineralisation both along strike and most importantly down dip. With another 11 holes still to report, we hope this continuity will grow.

“Once all the data is available we will undertake a detailed geological assessment and interpretation of Sanama and the licence as a whole that will drive the next stage of the project’s development.

“The average of all our drilling to date has returned a minimum grade of 3.9 g/t over a true thickness of 2.0 metres with the potential for greater widths to be discovered.”

Sula said that its drilling contractor, Equity Drilling, had received 67.3 million shares at a price of 0.225 pence to cover half of the cost of the program. Roger Murphy said the drilling has been completed in rapid time and ahead of Sierra Leone’s rainy season.

“Equity Drilling has averaged over 100 metres per day of core drilling with excellent core recovery from their two drill rigs and our payment arrangement has allowed us to drill almost double what we would have achieved had we paid in cash alone.  

“As a result of our strong relationship with Equity Drilling, Sula has managed to drill almost 9000 metres on our flagship Ferensola Gold Project in the last six months, a fantastic achievement.”

www.sulairongold.com